All Forum Posts by: Marc C.

...handle the required Fair Market Value form every year? 

https://www.theentrustgroup.com/FMV

• "It is required by the IRS for proper tax reporting.
• If you are using a third party to evaluate the value of an asset, the valuator must sign and date the form.
• The form must be sent to Entrust with supporting documents.
• A separate FMV Form must be completed for each asset held in your account."

A value of each asset within a limited liability company (LLC) or entity is required in order to determine the value of the LLC or entity. Real estate assets owned in an LLC or entity must be evaluated by a third party. Other assets owned in an LLC or entity, such as bank or brokerage accounts, should have year-end statements proving their value.

The value of the asset may be provided by a qualified third party, but they must provide sufficient supporting documents with the Fair Market Valuation Form.

That's like asking, "How much does a used car cost?" 

What is the quality of the property? What year was it built? What is the vacancy? What are the rents? What are Las Vegas' average apartment expenses? What type of loan will you get (affects cash flow)? What is the cash-on-cash return (ultimately, more important than cap rate)? What does the local commercial appraiser say? Have you talked to a local apt. lender: What do they say? 

Just had an offer on a $150,000 starter home. The buyer had a pre-approval letter and proposed a $500 down payment, FHA financing, and seller to pay all closing costs, because $500 was all the buyer had, period. (They wanted me to pay for the appraisal and the inspection, as well as all escrow fees and even the lender title policy. I declined the offer.)

Apparently, the New Mexico Mortgage Finance Authority offers a second mortgage called First Down that will cover the rest of the down payment and some portion of the closing costs. http://www.housingnm.org/homebuyers/first-down

This apparently allows one to buy with just $500 down. WOW! Did we learn nothing from 2005-2007? 

Is someone who has only managed to save less than what would be the deposit on an apartment really a good credit risk? Are they really ready for the hidden expenses of homeownership, like rising property taxes and maintenance/repairs? I think not. 

Any NM LMOs want to comment on whether I am correct and explain how this program works? 

Direct mail is how we find our off-market deals. Look for out-of-state landlords, those who have owned their properties more than 10 years, and mail and call them. It's time-consuming. 

Find a mentor who will show you the ropes is key when you are new. The REIA will be where to find one of those.

Time Machine: Just had an offer on a $150,000 starter home here in the Land of Enchantment (New Mexico...it's the 47th state, not a country). The buyer had $500 to put down, and no more. No problem! The New Mexico Financing Authority is somehow working with buyers so they can buy houses on FHA loans with $500 down. My buyer had a pre-approval letter, but didn't have enough cash to pay for closing costs, so their offer was that I pay for everything, even the inspection and appraisal. (I declined.)

I'm sorry, but if you have only demonstrated the financial wherewithal to save $500, are you REALLY a good, long-term candidate for purchasing a house? Wouldn't a car dealer want more than that to buy a $30,000 car (maybe not, if it's 2006 all over again). 

Doesn't this seem like 2006 all over again? Have we learned nothing? 

"Master leases, owner carry and all of that for MF was 4 to 5 years ago."

Spoken like a broker in a hot market: "All cash and nothing else." This has not been my experience at all with <100 unit properties owned by Mom and Pops: They WANT cash flow/capital gains deferral/seller financing. They WANT to deal with the outcome/taxes in a future year. I almost lost a deal recently because I assumed the seller wanted cash offers, and he actually is willing to carry a note with 10% down for 10 years at 5%. (I'll put more down.) Of course, I'm not talking about listed properties, but value-adds I find myself through direct mail and networking. And, again, these are Mom and Pops, not big institutionally-owned properties. But just saying don't make blanket statemetns like "Master leases, owner carry and all of that for MF was 4 to 5 years ago." just because of your own personal experiences that may not match others. 

That said, multifamily is the hottest investment going...a great time to sell or refi if you're the kind of person who times the market. But it sure seems bubbly to me, with all the newbies getting into it for the first time and all the shows and gurus offering advice that "anyone can do it." There are many complicated things like business and real estate that NOT everyone can do. Especially the 50% of the public who has an IQ less than 100. (Who now apparently vote in greater numbers than the other half.) 

"Land trust" was the first thing that came to mind. Very simple to set up; can be done at closing; can't legally trigger DoS clause. TONS of info on them here on BP and on that "Series of Tubes" called "The Internets." Get Googling, brother.